What is Intellectual Property Broker? Definition and Example
What is Intellectual Property Broker?Intellectual property broker is a person or a party that serves as a middleman between someone who possess an intellectual property and other people who want to cooperate with them. Theoretically, it is a professional party, usually comes in person, who assists the seller and buyer of intellectual property. This property refers to patents, inventions, and trademarks.
The buyers can take form of these two general categories: operating companies, and non-practicing entities. The difference is that operating companies tend to hire a broker for extra consideration whether the intellectual property or so we called IP can be applied through the industry or not. Meanwhile, the non-practicing entities are looking for any future development possibilities that can be pursued with the said intellectual property.
Intellectual Property Broker DefinitionSo to speak, the definition of intellectual property broker is a third person that mediates the seller and buyer of intellectual property. The broker can pinpoint what is exactly needed and wanted by the two confronting parties. For that reason, both their skills and personalities have to be strongly capable. They have to expertise in several certain fields, such as introduction, market analysis capability, competitive analysis, relationship management and contract negotiations. These features will make it easier for them to bring the buyer and seller together.
What Does an Intellectual Property Broker do? Example
1. Corresponding between IP owner and interested buyerThe main job of an IP broker is to fulfill the client’s request. At the same time, they also need to consider all conditions from the buyer’s side to make the outreach as mutual as possible for both sides of this trading.
2. Monitoring market and regulating worthy information on a daily basisEvery data and information is needed in order to make a solution to the client’s situation. An IP broker needs to collect them as well as maintain their watch in market daily. This is to make sure that the information is updated.
3. Consult with client to deliver the best outcome possibleThe more often the consultation is done, the higher the broker’s income will be. The sharing rate will be based from that point onward.
4. Help in deciding transaction executionThey also need to explain both parties’ position. When the clients understand their current position, it will be a lot easier for them to make a good agreement. It then leads to the solution for both sides.
Also read "What is Insurance Broker? Definition and Example"